AP7-2A
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Bus 1A ON1(31837)Sp08 / Ch7-Homework Assignment
AP7-2A
Ming Company’s chart of accounts includes the following selected accounts.
101
120
130
157
Cash
Merchandise Inventory
Prepaid Insurance
Equipment
201
306
505
Accounts Payable
T. Ming, Drawing
Cost of Goods Sold
On October 1 the accounts payable ledger of Ming Company showed the following balances: Bovary Company $2,910, Nyman Co. $2,600, Pyron Co. $1,810, and Sims
Company $3,740. The October transactions involving the payment of cash were as follows.
Oct. 1
3
5
10
15
16
19
29
Purchased merchandise, check no. 63, $360.
Purchased equipment, check no. 64, $960.
Paid Bovary Company balance due of $2,910, less 2% discount, check no. 65, $2,852.
Purchased merchandise, check no. 66, $2,410.
Paid Pyron Co. balance due of $1,810, check no. 67.
T. Ming, the owner, pays his personal insurance premium of $560, check no. 68.
Paid Nyman Co. in full for invoice no. 610, $1,740 less 2% cash discount, check no. 69, $1,705.
Paid Sims Company in full for invoice no. 264, $2,530, check no. 70.
Instructions
(a) Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr.,
and Cash Cr. Foot and crossfoot the journal. (If answer is zero, please enter 0 do not leave any fields blank.)
Cash Payments Journal
CP1
Check
No.
Date
Oct.
Account Debited
Ref.
1
63
Merch. Inventory
120
3
64
Equipment
157
5
65
Bovary Company
3
10
66
Merch. Inventory
120
15
67
Pryon Co.
16
68
T. Ming, Drawing
Other Accounts Dr.
Accounts Payable Dr.
Merchandise
Inventory Cr.
Cash Cr.
3
306
19
69
Nyman Co.
3
29
70
Sims Company
3
(X)
(201)
(120)
(101)
(b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the October transactions to these accounts. (If answer is zero,
please enter 0 do not leave any fields blank.)
General Ledger
Accounts Payable
Date
Explanation
Oct.
1
Balance
31
Balance
5
1
Balance
19
1
Balance
15
3
Accounts Payable Subsidiary Ledger
Ref.
Debit
Credit
Balance
Debit
Credit
Balance
Debit
Credit
Balance
Debit
Credit
Balance
3
1
29
Ref.
3
Ref.
3
CP1
Sims Company
Date
Explanation
Oct.
Balance
CP1
Pyron Co.
Date
Explanation
Oct.
Credit
CP1
Nyman Co.
Date
Explanation
Oct.
Debit
CP1
Bovary Company
Date
Explanation
Oct. 1
No. 201
Ref.
Balance
Ref.
3
CP1
(c) Prove the agreement of the control account and the subsidiary account balances.
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3/20/2008
AP7-2A
Accounts payable balance:
Page 2 of 2
$
Subsidiary account balances:
Nyman Co.
$
Sims Company
Total
$
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http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni
3/20/2008